Under a Floating Exchange Rate Regime

Under a floating exchange rate regime:

A) only fiscal policy must be used to reconcile the goals of internal and external balance.
B) the changes in the exchange rate will take care of external balance leaving macroeconomic policy to take care of internal balance.
C) deficits and surpluses in the official settlements balance will be the primary concern of policy makers.
D) monetary policy must be used to manage the exchange rate.

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